Construction nonpayment is not one problem with one remedy. The correct next step depends on who hired you, the property type, contract terms, licensing status, preliminary notices, completion events, payments already received, and deadlines. Start by building an accurate file, not by sending an improvised threat.
California's Contractors State License Board confirms that qualifying contractors, subcontractors, laborers, and material suppliers can record a mechanics lien when they are not paid. Read CSLB's Understanding Mechanics Liens overview and obtain project-specific advice promptly.
1. Reconcile the amount
Compare the signed contract, approved change orders, schedule of values, invoices, credits, deposits, retainage, and payments. Separate undisputed contract balance from disputed extras. Fix arithmetic and allocation errors before demanding payment.
2. Preserve proof of performance
Gather daily logs, photos, inspection records, delivery tickets, permits, customer approvals, subcontractor invoices, and communications. Record the dates work started, stopped, was completed, or was accepted. Do not rewrite old records to make them look contemporaneous.
3. Read the contract's collection process
Check notice addresses, cure periods, invoice-approval procedures, mediation or arbitration clauses, attorney-fee language, interest provisions, and termination requirements. A demand sent to the wrong address or without the contractually required detail can create avoidable delay.
4. Send a factual payment demand
Identify the contract, property, invoice, completed work, credits, balance, and requested payment date. Attach the supporting statement. Keep the tone professional. Do not claim a lien deadline, criminal consequence, or right to seize property unless California counsel has confirmed it for the actual facts.
5. Evaluate mechanics-lien rights immediately
A mechanics lien can affect title to the improved property, but California's process is technical. Eligibility can turn on licensing, claimant role, preliminary notice, timing, completion events, the amount claimed, recordation, service, and later enforcement. CSLB's consumer overview explains the concept but is not a substitute for calculating a contractor's deadline.
Consult a California construction attorney or qualified lien professional early enough to correct what can still be corrected. Do not copy a deadline from another state or from a different project role.
6. Control lien releases
California provides statutory conditional and unconditional lien-release forms. Match the form to reality. A conditional release is generally tied to actual receipt of the identified payment; an unconditional release represents that payment has been received. Signing the wrong form or amount can surrender leverage beyond the check in hand.
7. Choose the business response
Options can include a documented payment plan, mediation, arbitration, bond claim where applicable, mechanics lien, stop-payment notice in appropriate settings, collections, or litigation. The best route depends on amount, evidence, solvency, contract language, available security, and cost to pursue.
Prevent the next dispute
- Use written scopes and exclusions.
- Price change orders before performing them.
- Invoice on defined milestones.
- Track preliminary notices and deadlines from day one.
- Verify customer and property information before work.
- Do not let unpaid balances grow without written escalation.
- Use the correct conditional release with progress payments.
California nonpayment FAQ
Can a contractor file a mechanics lien?
Qualifying unpaid construction participants may have lien rights, but the requirements are technical and role-specific. Verify the actual project immediately.
Should work stop when payment is late?
Read the contract and obtain advice before suspending or abandoning work. An improper stoppage can create a separate breach dispute.
Can a customer promise extend a deadline?
Do not assume so. Treat statutory deadlines as active unless a qualified California professional confirms otherwise.
This page is general operational information, not legal advice. Mechanics-lien and contract rights are time-sensitive. A California construction attorney should review the specific contract, project role, notices, dates, and licensing status.